Posted on 29th April 2021 at 10:47
A director of a company is categorised officially as an officeholder and does not automatically qualify as an employee. If an individual is the only director of a limited company and manages the business himself, they may not qualify as an employee.
As per the Employment Rights Act 1996, Section 230 an employee is an individual that works under or has entered an employment contract. As a norm, directors do not sign any employment contract although they may have a service contract. This is practically the same and offers an individual employment status.